A roundup of some of the North American equities making moves in both directions today
On the rise
Alcanna Inc. (CLIQ-T) increased 4.7 per cent on Monday after it announced before the bell that it will buy 28 Solo liquor stores and three additional leased locations that have not yet been opened for $12.4-million plus inventory estimated at $3.4-million.
The Edmonton-based company said the deal is through its 71-per-cent owned Canadian Liquor Retailers Alliance Limited Partnership and the agreement is with FTI Consulting Canada Inc., the court-appointed receiver and manager of the Solo assets.
“Alcanna and the Alliance analysed each of the approximately 90 Solo locations currently operating, recently closed or with unconditional leases and selected the 28 operating stores and 3 leases which best fit the existing network of Ace and Liquor Depot stores,” the company said. “Twenty-two (22) of the twenty-eight (28) stores being acquired were opened for a full year in 2017, which was the last full year of operations before Solo encountered financial and operational difficulty, and reported total sales of approximately $84.5 million and $5.8 million of in-store/4-wall EBITDA in that year.”
After falling to a four-month low on Friday, Eldorado Gold Corp. (ELD-T) rebounded on Monday, sitting up 12.2 per cent.
Gold hit a more than one-week peak on Monday as trade tensions between the United States and China lifted appetite for assets seen as a haven from risk, while weak U.S. economic data boosted hopes for a rate cut from the Federal Reserve.
Spot gold inched up 0.1 per cent to US$1,285.56 per ounce. The metal touched $1,287.32 earlier in the session, its highest since May 17.
On May 22, the company announced it has priced its offering of $300-million (U.S.) aggregate principal amount of 9.5 per cent senior secured second lien notes due 2024, which will be offered at 98 per cent of par.
Eldorado intends to use the net proceeds from the sale of the notes, together with term loan proceeds incurred under its new senior secured credit facility and cash on hand, to redeem its outstanding $600-million (U.S.) 6.125 per cent senior notes due December, 2020, and to pay fees and expenses in connection with the foregoing.
“We believe the Greenspoint area of Houston is undergoing substantial change and revitalization with new property owners entering this submarket and investing significant capital to modernize and upgrade the office, hotel and retail properties in the area,” the company said. “We believe that our low cost basis in the properties acquired provides us with a margin of safety and will enable us to earn an attractive return as we add value to the properties and as the Greenspoint submarket improves.”
Calgary-based PetroShale Inc. (PSH-X) sat 2.9 per cent higher after it announced before the bell that revenue totaled $21.3-million in the first quarter, an increase of 11 per cent over the same period in 2018, due to higher production volumes.
Net loss of $996,000 or nil per share compared to net income of $2.4-million or a penny per share in the same period of 2018.
“The first quarter of 2019 was active as we invested $44.6 million for drilling, completions, pads, facilities and artificial lift in our South Berthold and Antelope areas that included drilling six (5.4 net) wells and fracing two (1.5) net wells,” the company said. "PetroShale also successfully acquired land and working interests within our core South Berthold area for approximately $2.0 million, further strengthening our existing portfolio of high-quality assets in the heart of the North Dakota Bakken / Three Forks play.
On the decline
The Calgary-based company, which is a subsidiary of Atco Ltd., has agreed to sell 11 partly or fully owned natural gas-fired and coal-fired electricity generation assets in Alberta, British Columbia and Ontario to Heartland Generation Ltd., an affiliate of Energy Capital Partners.
It has also signed an agreement to sell its 50-per-cent stake in the Cory Cogeneration Station near Saskatoon to SaskPower International.
“We are focused on building a globally diversified portfolio of energy-related infrastructure assets. Continually evaluating our business model and strategies ensures we are well-positioned to capture opportunities in markets at home and abroad,” said president and chief executive officer Siegfried Kiefer.
The company retained ASHCOR Technologies, the Oldman River Hydro Facility and its international projects.
It says it will have 250 megawatts of electricity generation assets in Canada, Mexico and Australia following the deals.
The NCIB allows Kirkland Lake Gold to purchase up to 20,989,692 common shares, representing 10 per cent of the current issued and outstanding Shares in the public float as of May 22.
“In May 2017, we launched an NCIB program and, since that time, have repurchased over seven million shares,” said president and CEO Tony Makuch. “The NCIB is an important component of our value creation strategy as the repurchase of shares provides a permanent favourable impact to earnings and cash flow per share metrics. Given the significant potential upside we see in our current share price, based on our expectation for continued strong operating and financial results, as well as the substantial exploration potential we have at Fosterville, Macassa and other targets, we plan to use the NCIB over the next year to support continued value creation."
With files from Brenda Bouw, staff and wires